General insurance protects your home, travel, vehicle, and health (non-life assets) against fire, flood, accident, natural disaster, and theft. Motor, health, travel, and home insurance are all general insurance. A public insurance policy compensates the insured for losses incurred during the policy’s term.
Various types of general insurance –
Because of their numerous benefits, it is critical to understand the various types of general insurance available today. Continue reading to learn more about them:
- Homeowners insurance:
Because the home is valuable, it is critical to protect it with an ideal home insurance policy. Home and household insurance protects your home and its contents. A home insurance policy covers man-made and natural disasters that may cause damage or loss.
- Automobile insurance:
Electric vehicle insurance or motor insurance protects your vehicle against damage, accidents, vandalism, theft, and other calamities. It is available in two varieties: third-party and comprehensive.
When your vehicle causes an accident, third-party insurance covers the harm done to a third party. However, it does not cover any of your vehicle’s damage. It is also worth noting that third-party motor insurance or bike insurance is required by the Motor Vehicles Act of 1988.
A comprehensive insurance policy protects your vehicle against fire, earthquake, theft, and impact damage, among other things. Furthermore, it protects against third-party liability in the event of third-party property damage, bodily injury, or demise.
- Travel protection insurance:
A travel insurance policy protects you when travelling internationally and incurs losses due to baggage loss, trip cancellation, or flight delay. If you are hospitalised while travelling, you may be offered cashless hospitalisation.
- Medical insurance:
Health insurance is an important risk management tool that assists you in dealing with medical emergencies. A health insurance policy will pay for hospitalisation expenses up to the amount insured. Regarding health insurance, one can choose between a standalone policy and a family floater plan that covers all family members.
What is the distinction between general insurance and life insurance?
- If the policyholder passes away prematurely during the policy term, the nominee is entitled to the sum assured by the insurance company. It is an essential financial instrument. Life insurance differs from general insurance in several ways:
- Life insurance is a long-term contract, whereas general insurance is a short-term contract. In the case of life insurance, the benefits and sum assured are paid upon the policy’s maturity or the demise of the policyholder. In the case of general insurance, on the other hand, the claim or the actual loss amount is reimbursed when a specific event occurs.
- Because a life insurance contract is long-term, the premium is paid throughout the policy term or until the minimum premium settling time is reached. In general insurance premiums, compensation is paid if the policy is renewed the following year.
A user should have mandatory general insurance.
Given the rising cost of healthcare, health insurance is a must-have, while travel and home insurance can save you a lot of trouble. They are not, however, required. Third-party liability car insurance is the general insurance coverage that is needed. This is the bare minimum of coverage a vehicle must have before it can be driven on Indian roads.
* Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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